Crypto World: How Tokenization Could Shake Up The $52 Trillion U.S. Real Estate Market

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Published 2024-04-04
As the U.S. real estate market ballooned to $52 trillion dollars in 2023, according to Zillow, a growing number of start-ups think web3 can lower the barrier to entry for aspiring real estate investors.

Lofty AI focuses on the rental market, allowing its customers to buy a stake in a rental property for as low as around $50. Those investors earn daily rental income and collectively govern decisions with the property.

Vesta Equity pairs investors with homeowners looking to sell a portion of their home equity as a token in return for cash. The homeowner can repurchase the token at market value at a later date, or the investor holding that token can take advantage of future appreciation of the property at the time of sale.

As these companies grow in users and revenue, there’s still a question of whether they fit under current U.S. regulations and how they could impact communities.

Chapters:
00:0000:56 Intro
00:5703:46 What is tokenized real estate?
03:4706:15 How is it regulated?
06:1609:28 How does it affect communities?

Produced, Shot, and Edited by: Kaan Oguz
Animation: Christina Locopo, Jason Reginato
Managing Producer: Jordan Smith
Supervising Producer: Jeff Morganteen
Additional footage: Jordan Smith, Getty Images

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Crypto World: How Tokenization Could Shake Up The $52 Trillion U.S. Real Estate Market

All Comments (21)
  • @tatianastarcic
    I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?
  • Best bet for 100x is going to be AMX59K , once its on major exchanges it will explode.
  • @LeilaniSterlin
    Kardden Token will make millionaires, after CEX listing it will blow up.
  • @ChadHardiman
    Kardden Token and amazon signed a partnership. It will blow up once it hits mainstream.
  • @MrHav1k
    What the hell is AMX59K??? More bot BS. Nice try with the crypto scam pump/dump
  • @EliWesley5
    I am so happy that I made productive decisions about my finances that changed my life forever. I am a single mother and I live in Spain, I bought my second house in September and I hope to retire next year at 40 if all goes well. thanks to Louise O'Brien for helping me achieve this.
  • @Benjamimic
    "...there's technically not a single person who can't be a home owner" but I want to live in a home, not poorly manage one with 1-1000s of individuals who only want a profitable return and don't care about who lives in the home. This is just going to exacerbate the housing crisis and may lead to only the top 1% actually owning 100% of their home.
  • @DonVillaLAN
    TLTR: It won't democratize Real State owning, it would expand Real State's stock trading capabilities though... Nice...
  • @berry292
    If the tokens are under a single LLC, why would you need a blockchain token in the first place instead of a normal database?
  • @TheSteakSammich
    This just seems like a worse REIT, with the addition of perverse incentives. I know they arent exactly analogous, but am I looking at this incorrectly? Im sure tokenization may have niche applications...I guess we'll see.
  • @brianh9358
    Homes should be for living in, not for investment. F**k this whole "turn everything into a commodity" mentality.
  • @PhilipMurray251
    Sold my APPL before it tanked, will buy at next major drop. I’d definitely need to make use of the $250k liquidity elsewhere. So what should I be looking at? Large cap or small cap stocks? Maybe crypto?
  • @mihoda
    You do not want to own a property with 200 other people regardless of the tech that does it.
  • @reyesarg
    Greedy people...Let's do options trading on your tangible house. (rubs hands together in greed)
  • @yannclisson8575
    Thanks one again for this video. Appreciate your input on youtube and also on The Canadian investor podcast 👌🏽
  • @masterchinese28
    "Don't call me homeless! I own $60 of real estate tokens." brags a dude who sleeps under a bridge.
  • I can’t tell whether this is worse than HOA’s or Timedhares. But it’s definitely a terrible investment idea and it will only make the rich richer and keep the not-so-rich further from living the American dream or owning anything outright.
  • @Alexibawendi
    As a newbie that wants to invest, you must have these three things in mind 1. Have a long term mindset. 2. Be willing to take risk. 3. Be careful on money usage, if you're not spending to earn back, then stop spending. 4. Never claim to know - Ask questions and it's best you work with a financial advisor.